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Q2. Saima Likes Shoes. Graphically Show How Saima's Demand Curve For Shoes Will Shift in The Following Cases A) She Gets Fired From Her Job

The document discusses how demand curves shift in various scenarios: a) When Saima loses her job, her demand for shoes shifts left from D to D1 as her income decreases. b) If a big shoe sale is expected, Saima's demand shifts right from D to D1 as she can buy more shoes for the same price. c) When shoe prices rise, Saima's demand shifts left from D to D1 as both price and quantity demanded increase from P1/Q1 to P2/Q2.

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Arpon Barua 1821897630
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106 views15 pages

Q2. Saima Likes Shoes. Graphically Show How Saima's Demand Curve For Shoes Will Shift in The Following Cases A) She Gets Fired From Her Job

The document discusses how demand curves shift in various scenarios: a) When Saima loses her job, her demand for shoes shifts left from D to D1 as her income decreases. b) If a big shoe sale is expected, Saima's demand shifts right from D to D1 as she can buy more shoes for the same price. c) When shoe prices rise, Saima's demand shifts left from D to D1 as both price and quantity demanded increase from P1/Q1 to P2/Q2.

Uploaded by

Arpon Barua 1821897630
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Q2. Saima likes shoes.

Graphically show how Saima's demand curve for shoes will shift in
the following cases

a) She gets fired from her job


When Saima gets fired, her income reduces. The reduction in income is showed by the shift
in the demand curve from D to D1. The decrease in income will reduce the quantity
demanded to Q2 from Q1.

b) She expects there will be a big sale on the shoes in a few months
when there is a big sale in a few months, her demand curve shifts to the right from D to D1.
This indicates that with the sale, she can purchase Q2 quantity of shoes for the same price.

c) She realizes that the price of shoes have increased


Initially, when the price of shoes is P1, the quantity demanded is Q1. When the price of
shoes increases to P2, the quantity demanded decreases to Q2.

Q3. Graphically show how the demand curve will shift in the following cases (complements
and substitutes)

a) demand for pizzas when the price of burgers decreases


Pizza and Burger are substitute good. Hence, when the price of burgers decreases the
demand for pizza decreases. When the price of burgers decreases, the quantity demanded
for burgers increases and the quantity demanded for pizza decreases from D to D1. The new
quantity demanded will be OQ2.

b) Demand for gasoline when the price of car decreases


Gasoline and Cars are complementary goods. When the price of cars decreases, the
demand for gasoline increases. When the price of cars increases the demand for cars
increases as well, since cars and gasoline are complementary goods the increase in the
demand for cars will increase the demand for gasoline which is showed by the shift in
demand curve from D to D1. the new quantity demanded for gasoline is OQ2.

c) Demand for popcorn when the price of movies increases


Movies and Popcorns are complementary goods. When the price of movies increases, the
demand for popcorn decreases. When the price of movies increases the demand for movies
decreases, since movies and popcorns are complementary goods the demand for popcorns
decreases as well. This is showed by the shift from D to D1. When the price of movies
increases the demand for popcorn decreases to OQ2.

D) Demand for ice cream when the price of airplane tickets increases.
Ice creams are something that you consume when you're boarding a flight, Hence ice cream
and airplanes can be considered as complementary goods.  When the price of airplane
tickets increases, the demand for ice creams decreases. When the price of airplane tickets
increases the demand for airplane traveling decreases, since icecreams and air traveling can
be considered are complementary goods the demand for ice cream decrease as well. This is
showed by the shift from D to D1. When the price of airplane tickets increases the demand
for ice creams decreases to OQ2.

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